MRF vs CEAT: Which One Is The Better Tyre Manufacturer?

MRF vs CEAT

Talking about the best tyres, there are two top tyres providers in India, MRF & CEAT, that have been in this game for a long time now!

MRF vs CEAT

There are certain factors that remain a top concern not only for car owners but for two vehicle owners, truck owners, etc.  while making a choice to select tyres for their vehicles. Well, to figure out those factors and to determine which one among the two is doing better, which one is budget-friendly, etc.

MRF Vs CEAT: Company Overview 

(A) MRF 

MRF, an acronym used for Madras Rubber Factory, is India’s top tyre manufacturing company, established in 1946 by K M Mammen Mappillai, based in Chennai (earlier Tiruvottiyur), Tamil Nadu, India. 

Initially the founder started the company as a toy balloon manufacturing unit, but later on in 1952, the company made its way into the world of tyre manufacturing. 

Currently, as of latest 2023, according to the UK based brand evolution company, MRF is considered as the most valued Indian tyre brand that has scored high in the sustainability perception value. It is the only Indian tyre manufacturer brand to feature in the top 10 tyre manufacturing companies in the world. 

(B) CEAT

Cavi Elettrici e Affini Torino known as CEAT, is another Indian multinational tyre manufacturing company  founded by Virginio Bruni Tedeschi in 1924 in Turin, Italy. Since then it has come a long way, and was established in 1958 in India, and is owned by RPG Group, one of the top business groups in India.

CEAT with a vision of making mobility safer and smarter, steps into both domestic as well as international markets. CEAT tyres are said to perform well in both summer and winter seasons and come with unique strong road traction that helps to make a strong hold on the roads. 

(C) Company Comparison 

Parameters MRF CEAT 
Founded 1946 1958 (India)
CEO K.M. Mammen Arnab Banerjee
Headquarter Chennai, Tamil Nadu, India Worli, Mumbai, India 
Type Public Public 
Tagline ‘MRF Tyres. Tyres with muscle’Born Tough 
Services provided Manufactures various tyres for four wheeler passenger cars,
two–wheelers,
off–the–road tyres and
airplane tyres, 
MRF ZVTS and MRF Wanderers for cars and SUVs,
MRF Meteor all terrain tyres,
MRF Steel Muscle for trucks and buses,
and provides tyre replacement too. 
Manufactures tyres for heavy-duty trucks and buses,
light commercial vehicles,
earthmovers,
forklifts,
tractors,
trailers,
cars,
motorcycles and scooters
as well as auto-rickshaws and
provides tyre replacement too. 
Areas served 2500 distributors in India, & serves
in more than 75 countries globally. 
Provides services in over 100+ countries.
MRF Vs CEAT Company Comparison

In the above table we have seen the company analysis of both MRF vs CEAT, and how much is their current market capitalization. 

Now let’s start with the comparative analysis of MRF & CEAT.

Comparative Analysis of MRF Vs CEAT 

Here, we’ll consider factors like its income valuation, cash flow management, its shareholding %, etc. These factors will help in knowing better between the two. 

Business Comparison of MRF vs CEAT

Parameters MRF CEAT 
Market Cap (2023) India Rs 57,560.52 CroresRs. 10,731.21 Crores
Revenue (2023)Rs.2,32,612 millionRs1,13,337 million 
CAGR grown %12.44%12.86%
Total wages (2023)Rs.15,594 million Rs.7,352 million 
Total income (2023)Rs.6,287.82 crores Rs.3,063.79 crores `
Total expenses (2023)Rs.5,411.5 crores Rs.2,721.6 crores 
Profit (2023)Rs.586.6 crores Rs.208.0 crores 
Employee count (2023)
India
10,001-50,000 5,001-10,000 
Businesswise Comparison of MRF Vs CEAT

From the above business analysis of MRF vs CEAT,  we can clearly see that MRF leads in the game by leaving behind CEAT in many domains. In terms of market cap, MRF secures a top position with a market cap of Rs.50,024.03 crores than CEAT and makes a huge difference of Rs.40,624 crores. 

The income difference is equally highlighted between the two, MRF making its total income leading to a good major number of Rs.6,287.82 crores, compared to CEAT number of Rs.3,063.79 crores. Apart from this the total expenses, profit, total wage increase, revenue increase follow the same pattern. 

Financials Comparison of MRF vs CEAT

Parameters MRF CEAT 
EBIT (2023)Rs.876.15 crores Rs.342.10 crores 
EBIT % Growth 0.5626.98
Net profit margin %9.336.79
Profit increased %16.431.1
Earnings per share Rs.1,813.6 Rs.45.1 
Gross profit (2023)Rs.23,966 million Rs.9,467 million
Gross profit margin %10.48.4 
Net sales (2023)Rs.230,085 millionRs.113,149 million 
Net fixed assets
(2023)
Rs.151,257 million Rs.69,379 million
Total assets (2023)Rs.243,694 millionRs.96,277 million
Return on assets %4.54.4
Return on equity %5.25.3 
Return on capital %9.010.2 
Financial Comparison of MRF Vs CEAT

From the above financials, we can see the key highlights of numbers between MRF vs CEAT.  MRF secures a notable net profit margin of 9.33% recording a good profit expenses. While on the other hand, CEAT recorded a percentage of 6.79. 

In some factors like return on capital, CEAT has a slightly higher percentage of 10.2 % than MRF, which has 9.0%. If we see collectively at the financials above, MRF shines as a bright name in the financials numbers and is bigger in comparison to CEAT. 

MRF Vs CEAT: Share Price Returns Performance

Here, we’ll see the returns on shares of both the companies over different time spans with their CAGR returns. 

Name of the Company 1 Year Returns 3 Year Returns 3 Year CAGR 5 Year Returns 5 Year CAGR 
MRF 29.43%52.09%15.03%79.0%12.44%
CEAT 26.44%98.33%25.90%81.95%12.86%
Share Price Comparison of MRF Vs CEAT

Both the companies differ in their share price returns over different time spans, and seeing the 5 year CAGR, CEAT has a slight increase in their numbers than MRF.  

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Cash Flow of MRF vs CEAT 

Parameters MRF CEAT 
Operations Rs.27,555 million Rs.12,055 million
Investments Rs.-19,235 million Rs.-8,491 million
Net cash flow Rs.-59 million Rs.369 million 
Cash Flow between MRF vs CEAT

From the above table, it can be stated that MRF has a higher cash flow from its operations as compared to CEAT, while net cash flow of MF is Rs.-59 million while CEAT has a notable and good number of Rs.369 million. MRF has paid a dividend of Rs.175.0 per share while CEAT paid a dividend of Rs.12.0 per share.

Summing Up: MRF vs CEAT: Which One Is Better? 

In this discussion of MRF Vs CEAT, MRF takes the center stage. MRF shines as a bright name in the tyre manufacturing industry. With its high market cap, revenue earnings, net sales, profit margins, etc. MRF leads the entire show.

MRF Vs CEAT: Which one is better?

As per the latest 2023, MRF is the only Indian company to enter into the list of top 10 tyre manufacturing companies globally and is ranked at 83.2 position out of 100. 

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Published By: Aashita Singh
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Saksham Rathi
Saksham Rathi
1 month ago

Was aware that MRF is a big name in the tyre industry, but didn’t knew that it has entered into the list of top tyre companies globally!